Investors' Herding Behavior in Crowdfunding Platform: Considering the Moderating Role of Environmental Factors

Presenter Information

Zujun Zhu, University of Science and Technology of ChinaFollow
Hefu Liu, School of Management, University of Science and Technology of ChinaFollow
Qian Huang, University of Science and Technology of ChinaFollow

Paper Number

2253

Paper Type

short

Description

Studies on crowdfunding are important, but most scholars focus on exploring factors that promote success of projects. Meanwhile, the research on investors’ behavior, especially the herding effect, has not reached a consistent conclusion. Leveraging data from a reward-based crowdfunding platform, we investigate how the previous funding level impact the subsequent contributions. Then we explore whether the platform-related environment, including competition intensity and social capital moderate the aforementioned relationship. We find an inverted U-shape relationship between the previous funding level and the subsequent contribution. The competition intensity attenuates this relationship, but most social capital strengthens it. We also discussed the theoretical and practical implications of this research.

Comments

15-Innov

Recommended Citation

Zhu, Zujun; Liu, Hefu; and Huang, Qian, "Investors' Herding Behavior in Crowdfunding Platform: Considering the Moderating Role of Environmental Factors" (2021). ICIS 2021 Proceedings. 20.
https://aisel.aisnet.org/icis2021/dig_innov/dig_innov/20